Oppenheimer has recently initiated Abbott Laboratories (ABT) stock to Outperform rating, as announced on October 8, 2024, according to Finviz. Earlier, on September 19, 2024, Piper Sandler had initiated the stock to Overweight, setting a price target of $131. Edward Jones also reduced Hold rating. Additionally, Goldman initiated Buy rating on May 30, 2024, with a target price of $121. Wolfe Research analysts, in their report published on July 21, 2023, also raised Peer Perform rating for Abbott Laboratories’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Abbott Laboratories (ABT) Stock Trading Recap
On Tuesday, Abbott Laboratories (ABT) stock saw a decline, ending the day at $113.02 which represents a decrease of $-0.17 or -0.15% from the prior close of $113.19. The stock opened at $113.56 and touched a low of $112.29 during the day, reaching a high of $113.81. The volume of shares traded was 3.94 million falling short of the average volume of 5.07 million.
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ABT Stock Performance and Moving Averages
In recent trading, Abbott Laboratories (ABT) stock price has shown some volatility, fluctuating -0.02% over the last five trades and -0.98% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 9.77%, and it has plunged by -2.67% in the previous three months. Currently, ABT is trading at -0.40%, -1.95%, and 2.21% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ABT, a Healthcare sector stock, is trading -7.09% below its 52-week high but remains 13.35% above its 52-week low. The Average True Range (ATR) (14 days) of 1.73 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Abbott Laboratories’s Profitability and Valuation Ratios
Abbott Laboratories’s profitability metrics reveal financial health. The company currently boasts an operating margin of 16.38% and a profit margin of 13.94%, with a gross margin of 9.77%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Abbott Laboratories’s market capitalization stands at $196.03 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 34.37, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 21.92. Additionally, the Price-to-Sales Ratio is 4.76, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.93, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.66% of Abbott Laboratories (ABT)’s shares, while financial institutions hold 76.61%.
Notable insider trades include ALLEN HUBERT L, EXECUTIVE VICE PRESIDENT at Abbott Laboratories (ABT), who sold 157421 shares on Oct 21 ’24, at $117.04 each, totaling $18.42 million. On Sep 12 ’24, Ford Robert B, CHAIRMAN AND CEO, sold 141679 shares for $116.41 each, amounting to $16.49 million. Additionally, on May 10 ’24, Funck, Jr. Robert E. sold 10097 shares at $104.57 each, generating $1.06 million.
